Starbucks (SBUX) workers’ union is extending its strike to more than 120 stores across 85 cities, demanding higher pay and improved staffing levels at the coffee chain. The timing coincides with Black Friday, the busiest shopping day of the year, when retailers see surging demand for food, groceries, and apparel.
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The strike was launched on Red Cup Day (November 13) with 65 stores across 40 cities and has now expanded into what could become the longest in Starbucks’ history.
The striking baristas are pressing for higher wages, better scheduling, and the resolution of hundreds of unfair labor practice charges tied to alleged union-busting.
It must be noted that contract talks stalled despite mediation efforts earlier this year. In April, union delegates rejected Starbucks’ proposed package, which included guaranteed annual raises of at least 2%.
Union Expands Strikes as Starbucks Downplays Impact
Workers United says it now represents over 11,000 baristas across 550 stores. The union has repeatedly targeted Starbucks’ busy holiday season and promotional events, such as Red Cup Day, when customers receive free reusable holiday-themed cups.
Starbucks, which operates more than 17,000 U.S. coffeehouses, downplayed the impact, noting that 99% of its stores remain open. According to Reuters, a Starbucks spokesperson stated, “Regardless of the union’s plans, we do not anticipate any meaningful disruption. When the union is ready to return to the bargaining table, we’re ready to talk.”
However, with the strike growing, the company is under pressure to settle labor disputes during its crucial holiday season.
Is SBUX Stock a Good Buy?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on Starbucks stock based on 12 Buys, seven Holds, and two Sells assigned in the past three months, as indicated by the graphic below. Further, the average SBUX stock price target of $95.00 per share implies 9.57% upside potential.
